Greece's strained relationship with Turkey over the long standing territorial dispute in Cyprus, along with sovereignty rights issue in the Gulf of Aegean and military modernization initiatives is expected to drive the Greek defense expenditure. As a percentage of GDP, the country's defense budget is expected to average 1.6% over the forecast period.
Greek military expenditure, values US$3.6 billion in 2018, and registered a CAGR of -4.16% during the historic period. However, over the forecast period, the Greek defense expenditure is projected to increase at a CAGR of 2.82% to value US$4.2 billion in 2023. During the same time, the capital expenditure allocation, is projected to increase to an average of 17.5% over 2019-2023.
This increase is primarily due to the procurement of advanced defense equipment and a focus on increasing the capabilities of the country's indigenous defense industry. Various procurements that are expected to fuel the growth of capital spending over the forecast period include frigates, corvettes, and multi-role aircraft modernization and MRO services. The country's lack of domestic defense capabilities juxtaposed to the extensive capabilities of its rival Turkish military, have forced Greece to procure sophisticated defense systems from foreign OEMs in order to strengthen the country's strategic assets and protect critical infrastructure.
The country's domestic defense sector is still in its nascent stage, and is currently developing an expertise in electronic defense systems in the area of military communication, in order to export such systems in the future.
Greek military expenditure, values US$3.6 billion in 2018, and registered a CAGR of -4.16% during the historic period. However, over the forecast period, the Greek defense expenditure is projected to increase at a CAGR of 2.82% to value US$4.2 billion in 2023.
The country's strained relationship with Turkey over the long standing territorial dispute in Cyprus, along with sovereignty rights issue in the Gulf of Aegean and military modernization initiatives is expected to drive the Greek defense expenditure over the forecast period.
As a percentage of GDP, the country's defense budget is expected to average 1.6% over the forecast period, compared to an average of 1.8% recorded during 2014-2018.
Key Topics Covered:
1. Introduction 1.1. What is this Report About? 1.2. Definitions 1.3. Summary Methodology 1.4. About the Publisher
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities 3.1. Current Market Scenario 3.1.1. Primary Threat Perception 3.1.2. Military Doctrine & Strategy 3.1.3. Military Fleet Size 3.1.4. Procurement Programs 3.1.5. Top Procurement Programs by Value (US$ Million) 2018-2023 3.1.6. Social, Political and Economic Environment and Support for Defense Projects 3.1.7. Political and Strategic Alliances 3.2. Defense Market Size Historical and Forecast 3.2.1. Greek total defense expenditure including pension is anticipated to grow at a CAGR of 2.64% over the forecast period 3.2.2. Greek base defense budget, excluding pensions is anticipated to grow at a CAGR of 2.82% over the forecast period 3.2.3. Conflict with Turkey and military modernization will drive Greek defense expenditure over the forecast period 3.2.4. Defense expenditure as a percentage of GDP is anticipated to decline over the forecast period 3.3. Analysis of Defense Budget Allocations 3.3.1. Capital expenditure allocation expected to increase over the forecast period 3.3.2. Capital expenditure expected to increase over the forecast period 3.3.3. The Army accounted for the largest share of the overall defense budget during the historic period 3.3.4. Other segment to account for the highest share of Greece's defense budget 3.3.5. Per-capita defense expenditure expected to increase over the forecast period 3.4. Homeland Security Market Size and Forecast 3.4.1. Homeland security market expected to grow at a CAGR of 3.88% over the forecast period 3.4.2. Illegal migration predicted to drive homeland security procurement 3.4.3. Greece is considered at high risk' of a terrorist attack 3.4.4. Greece experienced moderate terror activity during the historic period 3.4.5. Greece has a terrorism index score of 4. 3.5. Benchmarking with Key Global Markets 3.5.1. Greek defense budget expected to register consistent growth over the forecast period 3.5.2. Greek military expenditure is expected to remain low compared to other leading spenders 3.5.3. Defense budget as a percentage of GDP expected to remain moderate on a global scale 3.6. Market Opportunities: Key Trends and Growth Stimulators 3.6.1. Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections 3.6.2. Land-based C4ISR 3.6.3. Military IT, Data and Computing- Networking 3.6.4. Frigates MRO
4. Defense Procurement Market Dynamics 4.1. Import Market Dynamics 4.1.1. Defense imports maintained high volumes during the historic period 4.1.2. Germany accounts for most of Greece's defense imports 4.1.3. Naval vessels, aircraft, and missiles are the main categories of imported military hardware 4.2. Export Market Dynamics 4.2.1. Naval vessels are the main exported defense products
5. Industry Dynamics 5.1. Five Forces Analysis 5.1.1. Bargaining Power of Supplier: Low to Medium 5.1.2. Bargaining Power of Buyer: Medium to High 5.1.3. Barrier to Entry: Low 5.1.4. Intensity of Rivalry: Low to Medium 5.1.5. Threat of Substitution: Medium
6. Market Entry Strategy 6.1. Market Regulation 6.1.1. Offset obligations are attached to all defense deals 6.1.2. European Defense Agency promotes defense procurements within the EU 6.2. Market Entry Route 6.2.1. Budgeting process 6.2.2. Procurement policy and process 6.3. Key Challenges 6.3.1. Economic crisis will affect current and future procurements 6.3.2. IMF and EU regulations on Greek defense expenditure will limit Greece's flexibility in military maintenance
7. Competitive Landscape and Strategic Insights
8. Business Environment and Country Risk 8.1. Economic Performance 8.1.1. GDP Per Capita 8.1.2. GDP, Current Prices, US$ Billion 8.1.3. Local Currency Unit per US$ 8.1.4. Market Capitalization of Listed Companies 8.1.5. Market Capitalization of Listed Companies (% of GDP) 8.1.6. Exports of Goods and Services (LCU Billion) 8.1.7. Imports of Goods and Services (LCU Billion) 8.1.8. Goods Exports as percentage of GDP 8.1.9. Goods Imports as a Percentage of GDP 8.1.10. Gross National Disposable Income (US$ Billion) 8.1.11. Service Imports as a Percentage of GDP 8.1.12. Service Exports as a Percentage of GDP 8.1.13. Foreign Direct Investment 8.1.14. Net Foreign Direct Investment as a Percentage of GDP 8.1.15. Government Cash Surplus/Deficit as a Percentage of GDP (LCU) 8.1.16. Mining, Manufacturing, Utilities Output